Financial Ministers of the German States Criticize Federal Guidelines for Distribution of 100 Billion Euros
Germany’s state finance ministers have expressed concerns over the planned federal guidelines for the allocation of the 100 billion euros from the special fund. The proposed guidelines, which include a 60 percent quota for municipal investments, have been criticized for being too rigid and not taking into account the specific needs of local communities.
Schleswig-Holstein’s Finance Minister, Silke Schneider, a member of the Green Party, believes that the allocation of funds should be left to the discretion of the states, as they are better equipped to understand the unique challenges, investment needs and structures of their cities and municipalities. Schneider also emphasized the need for the federal government to compensate the states for the revenue losses resulting from the federal government’s investment program.
Berlin’s Finance Senator, Stefan Evers, of the Christian Democratic Union, shared similar concerns, stating that the city of Berlin cannot agree to measures that further reduce its revenue without the federal government providing a lasting and dynamic solution to offset the burden.
Baden-Württemberg’s Finance Minister, Danyal Bayaz, a member of the Green Party, also expressed reservations about the proposed guidelines, questioning the practicality and sense of the federal government’s detailed and bureaucratic provisions for implementing the goal of promoting additional investments. Bayaz has significant doubts about the effectiveness of such an approach.